UK legal body recommends new framework for using crypto as collateral

AMBCrypto
AMBCrypto

28 Jun 2023 8:30 AM

The UK crypto framework needs to be bespoke for using cryptocurrency as collateral, the Law Commission recommends....

  • The UK Law Commission has recommended creating a bespoke crypto framework for using crypto assets as collateral in the nation.
  • The proposed framework would go beyond existing UK regulations around collateral arrangements for traditional finance.
  • The commission also suggests classifying crypto assets as a new category of property and forming a panel of experts to advise courts on legal issues involving virtual assets.
  • The recommendations were made in a report published on 28 June, as part of the first government-commissioned analysis on accommodating crypto assets and NFTs in existing legal frameworks.
  • The commission deems existing rules in England and Wales as inadequate and calls for a multi-disciplinary project to formulate a better statutory legal framework.

The article presents the UK Law Commission's recommendations for a bespoke crypto framework positively, highlighting the need for better regulations and legal clarity for crypto assets.

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You May Ask

What is the UK Law Commission recommending regarding crypto assets?How does the proposed framework differ from existing UK regulations?What additional proposals does the commission make regarding crypto assets?When was the report published, and what is its significance?Why does the commission consider existing rules in England and Wales inadequate for crypto collateral arrangements?

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